Study Reveals
Motorists' Reactions
to High Gas Prices

A new study from the Congressional
Budget Office (CBO) has examined
consumers' responses to the upward
trend in gasoline prices that began
in 2003. The study revealed that
while consumers responded in a
variety of ways to the higher prices,
the overall effect was small. If
prices remain high, it is likely that
motorists will continue to adjust
their driving habits and vehicle
choices. These trends are expected
to have various safety impacts.

Freeway motorists have adjusted
to higher prices by making fewer
trips and by driving more slowly.
CBO analyzed data collected at
a dozen metropolitan highway
locations in California, along with
data on gas prices in the state to
identify changes in driving patterns.
On weekdays in the study period,
for every additional 50 cents in the
price of gas, the number of freeway
trips declined by about 0.7 percent
in areas where rail transit is a nearby
option (transit ridership increased
by a commensurate amount). Median speeds on uncongested
freeways declined by about threequarters
of a mile per hour for
every 50 cents the price of gas has
increased since 2003.

The study also indicated rising
gas prices are also having an impact
on the vehicle mix. In 2004, the
market share of light trucks began
to decline relative to that of cars.
That year, light trucks constituted
about 55 percent of the passenger
vehicle market. By 2006, that
proportion had slipped below
52 percent. The decline occurred
despite slight increases in financial
incentives from the industry to
entice consumers into buying the
trucks.

To download the publication visit www.cbo.gov and search for "Effects
of Gasoline Prices on Driving Behavior
and Vehicle Markets."